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As a result of the rapid growth of the Chinese economy, world demand for petroleum products has increased significantly. At the same time the war in Iraq has reduced that nation's petroleum production and exports to levels that are well below pre-war levels. Both events have had significant impacts on world oil prices. How would the simple supply and demand model apply to this case?
The marginal cost of production is $30. Which product should go to the retail market and which should go to the wholesale market? What are the corresponding retail and wholesale prices? What would happen if the sales are switched from the retail t..
What is meant by budget deficit? What are the different ways it can be financed? Is the national debt a problem? Discuss
The construction industry uses which of the following pricing methods? When problems are encountered with continuous improvement, how should problems be solved? A company could incur excessive costs and lose money if they primarily focus on _______ c..
Assume that the labor demand equation for a fictional country is Ld = 90 – 2w, where w is the wage per hour worked. Assume also that the labor supply equation for that country is Ls = 0.5(w). If the supply of workers increased, the number of unemploy..
Many U.S consumers want their meals in a hurry, but with more service and higher quality food than in traditional fast food restaurants. The result has been the rise of fast casual restaurant chains, such as Daphne’s Greek Café, Boston Market, and pa..
An industry demand curve faced by firms in a duopoly is P =69 - Q, where Q = Q1 + Q2. MC for each firm is 0 ( note: Marginal Revenue has twice the slope as the demand curve.) How many units should each firm produce? How much money will each firm make..
The dynamic aggregate demand curve will shift to the right if there is a:
Explain the difference between income effect and price effect in intergovernmental aid systems by also explaining the difference between foundation aid systems and power-equalizing aid systems
Imagine that the mayor has hired you as a consultant to evaluate the increase in aggregate demand in the city where you live. Describe to the mayor one (1) aggregate demand and supply factor that would have the greatest impact on the economy of your ..
Points that lie outside the production possibilities curve are ______, and points that lie inside the production possibilities curve are ______.
During Prohibition, some speakeasy operators paid bribes to ensure that the police did not raid them. Would you expect that the quality of the liquor served in such speakeasies to be higher or lower than in those that did not pay bribes? Would you ex..
Explain how does the deposit primarily change the T-account of the local bank. How does it change the money supply.
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